GLOBAL MARKETS | 13 NOVEMBER 2026
The US dollar strengthened on Friday and was heading for its strongest weekly performance in two months as rising Treasury yields and growing expectations of further Federal Reserve tightening reshaped currency-market positioning.
The dollar index was on course for a weekly gain of about 0.9%, supported by a sharp rise in short-dated US government bond yields. The two-year Treasury yield climbed 34 basis points over two sessions as investors reassessed the inflation outlook and the possibility of a larger rate increase.
Yen intervention concerns return
The Japanese yen hovered close to 159.89 per dollar after briefly touching 160, a level that has renewed attention on the possibility of official intervention. Japan’s finance minister warned that authorities would respond to excessive currency volatility.
The widening interest-rate advantage of the United States has continued to weigh on the yen, even as markets consider the possibility of further policy normalisation by the Bank of Japan. The euro and Australian dollar also faced pressure against the stronger US currency.
What investors are watching
Currency traders are monitoring US inflation data, Federal Reserve communication, Treasury yields and developments affecting global energy supply. Higher US rates can support the dollar, but they may also tighten financial conditions for borrowers and economies with significant dollar-denominated debt.
For emerging markets, a sustained dollar advance can increase the local-currency cost of external debt and imports priced in dollars. Businesses with foreign-currency obligations and investors exposed to international assets may therefore face greater exchange-rate risk.
Market perspective: The approach of USD/JPY towards 160 places the currency pair and the response of Japanese authorities firmly in focus. The direction of US inflation and Federal Reserve policy expectations remains central to the next move in global foreign exchange markets.
Source: Reuters, 13 November 2026. This report is an editorial summary of reported market developments, not investment advice. Read the Reuters report.